A study of inventory model for deteriorating items with price and stock dependent demand under the joined effect of preservation technology and price discount facility

Multi-item inventory model for deteriorating items with stock dependent demand under two-warehouse system is developed in fuzzy environment (purchase cost, investment amount and storehouse capacity are imprecise ) under inflation and time value of money. For display and storage, the retailers hire one warehouse of finite capacity at market place, treated as their own warehouse (OW), and another warehouse of imprecise capacity which may be required at some place distant from the market, treated as a rented warehouse (RW). Joint replenishment and simultaneous transfer of items from one warehouse to another is proposed using basic period (BP) policy. As some parameters are fuzzy in nature, objective (average profit) functions as well as some constraints are imprecise in nature, too. The model is formulated so to optimize the possibility/necessity measure of the fuzzy goal of the objective functions, and the constraints satisfy some pre-defined necessity. A genetic algorithm (GA) is used to solve the model, which is illustrated on a numerical example.

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A two-echelon inventory model with stock-dependent demand and variable holding cost for deteriorating items

Numerical Algebra Control & Optimization ◽

10.3934/naco.2017002 ◽

2017 ◽

Vol 7 (1) ◽

pp. 21-50 ◽

Cited By ~ 13

Author(s):

Magfura Pervin ◽

◽

Sankar Kumar Roy ◽

Gerhard Wilhelm Weber ◽

Keyword(s):

Inventory Model ◽

Deteriorating Items ◽

Stock Dependent Demand ◽

Holding Cost ◽

Variable Holding Cost ◽

Dependent Demand

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Optimizing preservation strategies for deteriorating items with time-varying holding cost and stock-dependent demand

Yugoslav journal of operations research ◽

10.2298/yjor190215003k ◽

2020 ◽

Vol 30 (2) ◽

pp. 237-250

Author(s):

Aditi Khanna ◽

P Priyamvada ◽

Chandra Jaggi

Keyword(s):

Optimal Solution ◽

Optimal Investment ◽

Deteriorating Items ◽

Time Varying ◽

Preservation Technology ◽

Special Cases ◽

Stock Dependent Demand ◽

Managerial Implications ◽

Holding Cost ◽

Dependent Demand

Organizations are keen on rethinking and optimizing their existing inventory strategies so as to attain profitability. The phenomenon of deterioration is a common phenomenon while managing any inventory system. However, it could become a major challenge for the business if not dealt carefully. An investment in preservation technology is by far the most inuential move towards dealing with deterioration proficiently. Additionally, it is noticed that the demand pattern of many products is reliant on its availability and usability. Thus, considering demand of the product to be ?stock-dependent" is a more practical approach. Further, in case of deteriorating items, it is observed that the longer an item stays in the system the higher is its holding cost. Therefore, the model assumes the holding cost to be time varying. Hence, the proposed framework aims to develop an inventory model for deteriorating items with stock-dependent demand and time-varying holding cost under an investment in preservation technology. The objective is to determine the optimal investment in preservation technology and the optimal cycle length so as to minimize the total cost. Numerical example with various special cases have been discussed which signifies the effect of preservation technology investment in controlling the loss due to deterioration. Finally, the effect of key model features on the optimal solution is studied through sensitivity analysis which provides some important managerial implications.

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